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"id": 1269047,
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"speaker_name": "Sen. Kisang",
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"legal_name": "William Kipkemoi Kisang",
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"content": "(d) Statement sought by Sen. Joe Nyutu regarding the status of the Last Mile Project in Murang’a County. We are still waiting for the responses from the Cabinet Secretary. The committee has been conducting an inquiry into the high cost of electricity in the country. The committee has met all the stakeholders, all Independent Power Producers (IPPs), that is those who produce 50 megawatts and above. The experience has been eye-opening as it demystified a lot of myths held before meeting the teams. It is, indeed, true that electricity in Kenya is generated by the IPPS. The IPPs have signed PPAs with the Kenya Power Company (KPC), the sole distributor of electricity in this country. The locally installed electricity capacity was 3,121 megawatts. From that geothermal energy produced 950 megawatts, thermal energy produced 646 megawatts, wind power was 436 megawatts, solar energy was 210 megawatts and hydro-generated power was 839 megawatts, giving us a total of 3,121 megawatts. From the meetings, the committee understood the role of each IPP. We also met with KP, which is the sole distributor in Kenya, and Kenya Transmission Company (KETRACO) which transmits the electricity. The reason for the meeting was to find out what can be done by KP and KETRACO to reduce the cost of power in the country. It was surprising to learn that just by completion of the Narok-Bomet transmission line, Kendu-Bay- Kisumu transmission line, and Mariakani- substation, then the coast region will enjoy the benefits of geothermal and there will be no need to purchase electricity from Rabai Power. Muhoroni gas power plant which produces electricity at the highest cost, above 52 cents per megawatt will be shut down and people in Western Kenya will enjoy cheaper stable geothermal power, but these three lines have not been done. Basically, this is a progress report and we were given assurance by the Cabinet Secretary that by December this year, these lines would be completed and we expect the cost of power to come down by next year. The Committee also held an electricity stakeholder workshop that brought together the Ministry of Energy, KP, KETRACO, EPRA and the Electricity Sector Association of Kenya. The workshop was a great success as these teams had never met in the past together under one roof. So, it was a success and we expect there will be benefits to the country towards the end of this year. The committee will be retreating to write its report soon. This report will have recommendations that are timely and actionable. We will also be proposing to do amendments to the Energy Act. The committee will be, for example, recommending that all thermal plants in the short term pull together to purchase Heavy Fuel Oil (HA4). Currently, each thermal power producer procures and stocks HA4 for 2 years, which is expensive. However, if they can buy as a group, basically, the cost of HA4 will come down and we expect the cost of power to also come down. This will benefit from the economics of scale which will reduce the cost of electricity to the consumers. The electronic version of the Senate Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Director, Hansard Services,Senate."
}